- Prospectus is an important document inviting public at large to make investment in a company.
- As per the provisions of the Companies Act, 2013 the following matters are to be included in the prospectus:
1. Name of a Company.
2. Address of Registered Office of a Company.
3. Names and addresses of Company Secretary, Chief Financial Officer, Auditor, Legal Advisors, Banker, Trustee, Guarantor Brokers and other specified persons.
4. The dates of opening and closure of the subscription, Allotment of securities and Time limit for payment of money.
5. Statement of Promoters to the effect that the company will open a separate account in a Bank and the entire fund would be kept in it.
6. All information about the under-writer Contract.
7. Consent of the Promoters, Auditors, specific Bankers, Experts and all other concerned officers.
8. Information about the authorized officer regarding subscription and the resolution regarding it.
9. The schedule about the process of distribution regarding securities.
10. Capital structure of a company as per the Companies Act.
11. The purpose of Public Subscription, conditions and other relevant matters.
12. The main object of a company and its present business, the place of business and the schedule of implementation of its project.
13. Regarding project:
(a) The idea of promoters and risk factors in it.
(b) Waiting period for the project.
(c) The development in the project.
(d) Time for completion of the project.
(e) Information regarding any pending suit, legal proceedings or filing of a suit or legal proceeding against a promoter by Government Department during, of past 5 years from the date of publication of the prospectus.
14. Information about the Minimum Subscription, information regarding the amount to be paid as premium, information about issuing of any share except cash.
15. Information about the Board of Directors, their appointment, remuneration and the details about their interest in the company, if any.
16. Information about the contribution of the promoters.
17. The following additional information is required to be given by such companies having business in existence:
(a) Profit-loss statement of the company, Final Balance-Sheet, report of auditor regarding it.
(b) Profit-loss information of past five years before publication of prospectus, Reports of Ancillary Branch.
(c) Information regarding the business in which direct or indirect use of the obtained securities is to be utilized.
18. Statement to the effect that the contents of the prospectus are not violating the Companies Act, Securities Contract Act, 1956 or the SEBI Act, 1992.
19. The date written in the prospectus will be considered as the date of publication of the prospectus.